RIYADH, 9 October — Saudi Arabia and Italy looked set to enter a new era of economic cooperation following an agreement endorsed here by Saudi Arabian General Investment Authority (SAGIA) and SIMEST, an apex Italian institution to support the country’s businesses abroad.
The new initiative will help set up 30 to 40 Saudi-Italian mall and medium enterprises (SMEs) at an estimated cost of SR375 million within 18 months.
This was disclosed to Arab News on Monday by Cesare Orlandini del Beccuto, international business adviser to the Rome-based SIMEST. Orlandini said that SAGIA, led by Prince Abdullah ibn Faisal Al-Turki, and SIMEST will help Saudi and Italian entrepreneurs in terms of dissemination of information to set up joint ventures especially SMEs. SIMEST will also assign an expert to SAGIA to ensure better cooperation and coordination with entrepreneurs.
Orlandini said the Italian government has set up SIMEST to promote joint ventures abroad and provide them with technical and financial support. It is a limited company controlled by the Italian government and its shareholders include a number of banks, business organizations and trade associations.
Referring to his talks with senior officials of SAGIA, Council of Saudi Chamber of Commerce and Industry (CSCCI), Ministry of Agriculture and Riyadh Chamber of Commerce and Industry (RCCI), the Italian official said that several Italian companies have evinced keen interest to set up joint ventures.
This interest will get a boost when the two countries hold a three-day joint economic commission meeting from Oct. 29. Minister of Finance Dr. Ibrahim Al-Assaf will lead the Saudi delegation to the meeting in Rome.
Referring to his talks with Deputy Minister of Agriculture Dr. Abdullah Al-Obaid, Orlandini said that they discussed a proposal to identify an Italian company which will provide technical assistance to the Kingdom’s fruit and vegetable sector. The aim is to optimize production of fruits and vegetables besides exporting them to neighboring countries and Europe. Italy has expertise in this sector having revolutionized agricultural production since World War II.
The SIMEST, he said, is also seeking cooperation to work in the poultry sector. SIMEST can acquire upto 25 percent of the equity in joint ventures set up in the Gulf countries or for that matter in any other country.
